Clifford Chance counsels Grenergy on €110m PV financing

Clifford Chance has advised Spain´s Grenergy on the financing of its solar park in Cuenca for €110 million

Grenergy, the Spanish company producing energy from renewable sources, has signed a green financing agreement worth €96.7 million with KFW and Bankinter for the construction and development of the Escuderos solar park in Cuenca.

Through this agreement, KFW IPEX-Bank will assume two thirds of the senior debt – approximately €64 million – while Bankinter will finance the remaining amount, around €32 million. This Project Finance includes the financing of the debt for the construction period and 17 additional years.

It is a green loan in line with the Green Loan Principles (GLP) and has an independent verification of alignment by G-Advisory.

On the other hand, Axis Participaciones Empresariales, a Venture Capital management company wholly owned by the Instituto de Crédito Oficial (ICO), through Fond-ICO Infraestructuras II, also enters into the financing with a subordinated debt of €12.9 million and the same maturity.

The Escuderos solar park, located in Poveda de la Obispalía, belonging to the municipality of Altarejos in Cuenca, is already under construction and will be one of the largest in Spain with a maximum power of 200 MW and an annual production of 385 GWh.

The Escuderos solar farm is Grenergy’s first major project in Spain and represents a strong commitment by the company to this market, a key country in its strategic plan, where the company has a portfolio of 1.4 GW projects at different stages of development.

Clifford Chance advised Grenergy with a Banking & Finance team comprised of partner José Guardo (pictured left), senior associate Eduardo Sánchez (pictured right), and associates Gabriel Miranda and Alejandro Cubillo.